We often define warehousing as the storage of goods. Broadly interpreted, this definition includes a wide spectrum of facilities and locations that provide warehousing, including the storage of iron ore in open fields; the storage of finished goods in the production facility; and the storage of raw materials, industrial goods, and finished goods while they are in transport.
Warehousing refers to the activities involving storage of goods on a large-scale in a systematic and orderly manner and making them available conveniently when needed. In other words, warehousing means holding or preserving goods in huge quantities from the time of their purchase or production till their actual use or sale.
Warehousing is one of the important auxiliaries to trade. It creates time utility by bridging the time gap between production and consumption of goods.Warehousing caters to the storage needs of different types of commodities. In order to meet their requirement various types of warehouses came into existence, which may be classified as follows Private Warehouses, Public Warehouses ,Government Warehouses , Bonded Warehouses , Co-operative Warehouses.
Warehousing is costly in terms of human resources and of the facilities and equipments required, and its performance will affect directly on overall supply chain performance. Inadequate design or managing of warehouse systems will jeopardize the achievement of required customer service levels and the maintenance of stock integrity, and result in unnecessarily high costs. As a whole it is a good project for entrepreneurs to invest.